The government published its response to the Energy Company Obligation, ECO+ consultation on 1 March 2023, setting out the final design of a scheme now called the Great British Insulation Scheme1. The scheme will run from 2023 to 2026 and apply in England, Scotland and Wales1. It follows a consultation that drew 176 responses addressing the ECO+ questions directly, plus 18 general responses1.
The government said it renamed the scheme to help with consumer awareness, and recognition of the support available1. It estimates the scheme will make around 300,000 homes more energy efficient, primarily through insulation measures such as cavity wall insulation, and that households receiving insulation upgrades will see bills reduce by around £300 to £400 on average per year1. The scheme has a £1bn budget, and the government said a minimum of 20% of the support provided through it will go towards boosting support for low-income and vulnerable households, amounting to 5.9% of the total budget, or £59m1.
"We have renamed the scheme to help with consumer awareness, and recognition of the support available."
Eligibility is split into two groups. The general group covers homes with an EPC rating of D to G within Council Tax bands A to D in England and A to E in Scotland and Wales1. The government expanded eligibility in Wales from the A to C bands proposed in the consultation to A to E, to better align the proportion of eligible homes in each nation1. The low-income group covers homes with an EPC rating of D to G and broadly mirrors the household eligibility requirements of ECO4, being on means tested benefits or living in the least efficient social housing1. At least 20% of each supplier's annual phase target must be delivered to households in the low-income group1.
| Nation | General group Council Tax bands |
|---|---|
| England | A to D |
| Scotland | A to E |
| Wales | A to E |
The government also set out a flexible eligibility element, under which households that do not meet the low-income group criteria but are considered by a local authority or participating energy supplier to be living in fuel poverty or on a low income and vulnerable to the effects of living in a cold home can be supported1. Households treated this way can comprise up to 80% of a supplier's low-income minimum1. A 20% rural off-gas uplift will apply in Scotland and Wales for the low-income group across all measure types1. The government decided not to permit Route 4 as an option for GB Insulation Scheme Flex, and to implement the in-fill proposals as consulted, but without the function enabling blending between ECO4 and the scheme1.
Suppliers may begin delivering measures ahead of the legislation coming into force, from the date the response was published, though the government said it will not allow acceptance of measures delivered ahead of publication1. It plans to lay affirmative regulations in Parliament, which it expects to come into force later this year1. A self-referral service is planned for summer 2023 as part of GOV.UK1.
Why it matters for households
The scheme widens the pool of homes that can receive support beyond the low-income and vulnerable households that ECO4 prioritises, using Council Tax band and EPC rating as the main tests rather than benefit receipt alone1. For a household in the general group, that means eligibility can rest on the property's band and energy performance rather than on income. The government's own estimate of £300 to £400 in annual bill savings per upgraded home is a range, used to reflect uncertainty in gas prices for domestic consumers1. The 20% low-income minimum within each supplier's annual target means a fixed share of delivery is reserved for households on means tested benefits or in the least efficient social housing1. The rural off-gas uplift in Scotland and Wales recognises that homes without a gas connection face different costs1. Details of how the scheme compares with ECO4 are set out in the Great British Insulation Scheme vs ECO4 guide, and eligibility tests are covered in the Great British Insulation Scheme Eligibility guide.
What happens next
The government said it will lay affirmative regulations in Parliament, which it expects to come into force later this year1. It plans to launch a self-referral service in summer 2023 as part of GOV.UK1. Suppliers may begin delivering measures from the date of publication, but measures delivered ahead of publication will not be accepted1.
Sources1 cited
- Great British Insulation Scheme (2023-2026) and Amendments to ECO4 regulations: government response, assets.publishing.service.gov.uk